Digital deal 'never signed'

Troubled broadcaster ITV Digital was allowed to launch its coverage of Nationwide Football League matches without a written guarantee that it would pay up in full sums owed to clubs should the venture fail.

Troubled broadcaster ITV Digital was allowed to launch its coverage of Nationwide Football League matches without a written guarantee that it would pay up in full sums owed to clubs should the venture fail.

The so-called 'long form report' which gave the full details of the #325million contract was never signed because Carlton and Granada, the two TV companies jointly involved, refused to agree to the necessary assurances.

Millwall chairman Theo Paphitis, one of the most outspoken critics of the ITV Digital operation, told The Sunday Telegraph: "It was made absolutely clear that guarantees would have to be given.

"But ITV Digital were taking on Sky head-to-head and wanted to get on with it.

"The long form report should have been done but it never got executed, even though the Football League lawyers worked tirelessly to complete the documentation."

The 72 Nationwide clubs are desperately worried that now ITV Digital has been placed into administration they will not receive the #180m outstanding for the remaining two years of the contract.

The situation is putting increased financial pressure on a number of lower division clubs who are already strapped for cash.

However, in spite of the worries raised by Paphitis, the Football League insist they have a "cast-iron case" against the broadcaster.

"The long form contract took several months to negotiate and in the end it was impossible for the parties to agree," said League spokesman John Nagle.

"But there is enough reference in the short form contract for us to confidently claim we have the necessary guarantees. This is perfectly standard practice in broadcasting deals."